The White House has ordered a pause on federal grants and loans, excluding student loans and financial aid for college, to review government funding for causes that do not align with President Donald Trump’s policy agenda. The freeze could affect billions of dollars in aid, with exceptions made for Social Security and Medicare. The Department of Education clarified that federal Pell Grants, student loans, and the Free Application for Federal Student Aid will not be impacted by the freeze. However, programs such as federal work-study and the Federal Supplemental Educational Opportunity Grant may be affected. The pause only applies to discretionary grants at the Department of Education and will be reviewed by department leadership.
The freeze has caused confusion in terms of how it will impact funds sent to institutions, states, and organizations before reaching students. While most federal financial aid programs labeled as Title IV funds for individual students are not expected to be impacted, other aid programs outside of Title IV remain unclear.
According to experts in higher education, the funding pause could have a negative impact on students, institutions, and research if it continues. Organizations such as the National Association of Student Financial Aid Administrators and the American Council on Education are calling for the Trump administration to rescind the memo, citing the potential damage it could cause.
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